Defense Electronics Market - By Component (Hardware, Software), By Vertical (Navigation, Communication & Display, C4ISR, Electronic Warfare, Radar, Optronics) By Platform (Airborne, Marine, Land, Space), By Region & Global Forecast 2023 – 2032

Defense Electronics Market Size

Defense Electronics Market size valued at USD 230 Billion 2022 and is anticipated to grow at a 5% CAGR between 2023 and 2032.

The increasing reliance on the protection of information & communication technologies reveals the vulnerability of cyber threats. This creates the need for cybersecurity measures and sophisticated electronic systems to protect critical systems and sensitive data.

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Defense electronics refers to the electronic equipment and special systems designed for the country's defense technology. Defense electronics provides powerful electrical equipment, high performance, electrical protection, and the ability to extinguish fire to support the work done and reduce the risk of injuries.

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Defense electronics are subject to strict export regulations and international trade restrictions. These regulations are designed to hinder the development of technology and ensure national security. Compliance with export regulations can pose problems for companies operating in the global electronic protection market.

Defense Electronics Market Trends

The growing adoption of integrated defense technologies is likely to augment market growth. Integrated defense technologies encompass the integration of multiple systems & technologies to create comprehensive defense systems. These technologies can include sensors, communications, automation, and cyber defense. Integration enables effective information sharing and communication between defense systems, resulting in situational awareness, better decision-making, and improved defense. Integrated defense technologies can also deliver cost savings and enhance efficiency by reducing costs and improving deployment. The use of collision avoidance technology is expected to increase in the coming years as the need for flexibility and operational protection grows.

Defense Electronics Market Analysis

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Based on component, the defense electronics market is segmented into hardware and software. The hardware segment will record 5.5% CAGR through 2032. The hardware segment includes various equipment & systems that are important to the development & operation of electrical defense. In addition, the Electronic Warfare (EW) used for defense, electronic surveillance, and electronic evaluation includes hardware such as electronic warfare receivers, jammers, Radar Warning Receivers (RWR), and Electromagnetic Radiation Monitoring (ESM). These hardware components facilitate the development of advanced defense systems and enable capabilities, such as communications, surveillance, detection, routing, and control, that are respected in national defense operations.

Furthermore, with the increasing reliance on communications and communication security systems, cybersecurity has become a major concern. The hardware system is propelled by the need for hardware security and strong encryption systems that protect systems from cyber threats and ensure data integrity.

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Based on industry vertical, the navigation, communication & display segment of the defense electronics market expanded at a 6.5% CAGR in 2022. These focuses on systems & technologies for accurate location, navigation, and guidance in defense operations. This section includes various equipment & systems that are designed to provide accurate & reliable navigation in harsh environments. Additionally, unmanned systems including UAVs (Military Drone) and UGVs rely heavily on navigation systems to operate autonomously or remotely. The demand for accurate and robust navigation hardware & software solutions for unmanned platforms will enhance the navigation segment share.

Based on platform, the airborne segment held approximately 35% of the defense electronics market share in 2022.  The airborne segment focuses on systems & technologies that are specially designed for use in aircraft and aircraft platforms. It features a variety of electronics and systems essential for on-board operations and mission success. Moreover, avionics systems are essential components of the airborne segment, which includes flight control systems for aircraft control, communications, navigation, and tracking. This includes flight control, cockpit instructions, communications, navigation systems, and surveillance. The demand for advanced avionics is a key driver responsible for airborne segment growth.

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The defense electronics market for North America accounted around 40% of the revenue share and was valued over USD 95 billion in 2022. United States has the largest military budget in the world, with the country spending around USD 715 billion according to the Department of Defense in 2022. The country invests heavily on improving their defense capabilities to maintain their military dominance and protect their national security interests. Similarly, the country is home to leading defense electronics companies such as Northrop Gruman, Raytheon, Lockheed Corporation, etc. These companies are continuously investing on the development of new technologies in this market. Increasing defense expenditures have created opportunities for the regional market expansion.

Defense Electronics Market Share

The major companies operating in the defense electronics market are

• Airbus Defence and Space
• BAE Systems plc
• Bharat Electronics Limited
• Boeing Defense
• Space & Security
• Elbit Systems Ltd.
• General Dynamics Corporation
• Harris Corporation
• Honeywell International Inc.
• Indra Sistemas
• L3Harris Technologies, Inc.
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Saab AB
• Thales Group
• Ultra Electronics Holdings plc.

Defense Electronics Industry News

• In April 2022, Australia and the UK signed an agreement to cooperate on powerful weapons and electronic warfare capabilities, following the establishment of the AUKUS defense alliance in September 2021
• In March 2022, BAE Systems launched a new Electronic Warfare (EW) package that provides offensive & defensive EW capabilities to various platforms. The Storm Electronic Warfare Module system can be customized for the U.S. and coalition forces, and can be integrated into fixed-wing aircraft, helicopters, unmanned aerial vehicles, and missiles.

This defense electronics market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2019 to 2032 for the following segments

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By Component

• Hardware
• Software

By Vertical

• Navigation
• Communication & Display
• C4ISR
• Electronic Warfare
• Radar, Optronics

By Platform

• Airborne
• Marine
• Land
• Space

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada 
• Europe
  • UK
  • Germany
  • Russia
  • France
  • Italy
  • Netherlands
  • Norway
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • ANZ
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • Israel
  • UAE
  • Turkey
• Latin America
  • Brazil
  • Mexico